Yes it is over. The US and Europe have gone beyond the point where it will work.

For austerity to work both spending and taxes need to be cut at the same time. This allows the private sector to take up the slack from lower government spending. It helps if red tape is also cut as well.

There is currently too much debt in the public sector and the deficits are too large to do this now. There are too many people dependant on government cheques. The only solution they have left now is inflation and kicking the can down the road in the hopes the people don't notice the gradual loss of purchasing power.

When Sarkozy losses the French election it will send a message to every European leader that austerity is bad for employment. Their Own.